A

MINI PROJECT -I
ON

Clothing Manufacturer Business Plan

TO BE SUBMITTED TO DR. APJ ABDUL KALAM, UNIVERSITY, LUKCNOW. IN

THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Batch 2023-25

UNDER THE GUIDANCE OF: SUBMITTED BY:

Dr. SATENDRA SOAM MOHD HASSAN
H.O.D., OF MBA DEPT. PREERN . 230041855
MBA 1ST SEM
 Certificate

This is to certify that Mr. Mohd Hassan is a bonafide student of MBA first
semester in our Institute He has submitted the Mini Project- 1 titled Clothing
Manufacturer Business Plan

to fulfill the partial requirements of MBA degree Program of Dr. Abdul Kalam

Technical University, Lucknow. He has prepared Mini Project-

Name of Project Guide Dr . SATENDRA SOAM

Designation: HOD OF MBA

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 INDEX

1. Student Declaration …………………………………………….. 4

2. Acknowledgement ……………………………………………... 5

3. Executive Summery …………………………………………….. 6

4. Objective of The Study ………………………………………….. 8

5. Introduction …………………………………………… 9

6. Problem & solution …………………………………………... 10

7. Market Plan …………………………………………... 13

8. Sales Plan …………………………………………... 14

9. Key Metrics …………………………………………... 15

10. Company …………………………………………... 16

11. SWOT analysis …………………………………………... 18

12. Financial plan ………………………………………….. 19

13. Advantages/disadvantages ……………………………………….. 20

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 STUDENT DECELERATION

I am Mohd Hassan bearing of A.P.J University Lucknow, enrolled as student of

MBA of Master School of management , Meerut solemnly declare that the project

titled, The Study of Challenges faced by paper Industry embodies the result of

original research work carried out by me and the same has not been submitted in any

form partially or fully for award of any diploma or degree of this or any other University.

MOHD HASSAN

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 PREFACE

In the changing world of fashion where trends evolve and styles endure we are thrilled to
present this business plan for [FLAIR TEXTILE]. With an appreciation for quality and a strong
sense of style we embark on a journey to reshape the landscape of clothing manufacturing.
Within this document lies the culmination of our passion, relentless dedication and strategic
foresight as we pave the way for [FLAIR TEXTILE.] future. As we delve into the tapestry of the
fashion industry we recognize the pressing need for innovation, sustainability and an
unwavering commitment, to delivering quality.
Understanding the changing world of fashion;
We understand the importance of staying of the game, in the fashion industry. This business
plan outlines our strategies for navigating through trends, technology advancements and
meeting consumer expectations. We pay attention to every aspect of our business from
designs to efficient supply chain management.
Prioritizing sustainability;
In todays world sustainability is not a word; it's a responsibility we take seriously at[FLAIR
TEXTILE] This plan highlights our efforts to minimize our impact, on the environment
promote sourcing practices and make contributions to the communities where we operate.

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 Executive Summary

Opportunity

Problem

Flair textile intends to lever up its position as an established retail men’s clothing business now
to become a manufacturer of an upscale clothing line targeted at males between the ages of 20
and 40. Flair textile not only develops the clothing line, but supports it with advertising and
promotion campaigns. The company plans to strengthen its partnership with retailers by
developing brand awareness. Flair textile intends to market its line as an alternative to existing
clothing lines, and differentiate itself by marketing strategies, exclusiveness, and high brand
awareness.

The key message associated with the Flair textile line is classy, upscale, versatile, and expensive
clothing. The company’s promotional plan is diverse and includes a range of marketing
communications. In the future, the company hopes to develop lines of accessories for men,
women, and children. These accessories will include cologne/perfume, jewelry, eyewear,
watches, etc.

Solution

Flair textile not only develops the clothing line, but supports it with advertising and promotion
campaigns. The company plans to strengthen its partnership with retailers by developing brand
awareness

Market

Our customers are males between the ages of 20 to 40 with a disposable household income.
Within this group, there are no colour barriers, and customers have diverse backgrounds. The
Flair textile high price for quality clothing.

Competition

Companies are restructuring to create leaner organizations and adopt new technologies.
Consolidation has been prevalent in this industry in the past few years, as larger companies gain
leverage in market position and cost cutting. In the apparel industry, companies can operate as
retailers or manufacturers (wholesalers) or both. For instance, Gap, Inc., a vertical retailer,
manufactures and markets their own apparel and accessories. A company like manyavar is a
manufacturer and sells solely to retail channels. A company like allen solly does both, selling its
products to both retailers and consumers (through retail outlets).

Why Us?

We are an alternative to existing clothing lines. We make our own lines which offers exclusivity,
your coworkers or other fashion forward friends won’t be wearing the same thing. We are also
highly aware of trends and brands, you will be the envy of all your friends because you found us
first.

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Expectations

Forecast

The company’s goal is to expand from retail into online, with its own branding, to be sold by the
end of the period in other retail stores as well as online.

Financial Highlights by Year

₹ 7,000,000.00

₹ 6,000,000.00

₹ 5,000,000.00

₹ 4,000,000.00

₹ 3,000,000.00

₹ 2,000,000.00

₹ 1,000,000.00

₹ 0.00
2021 2022 2023

Revenue expenses & cost net profit

Financing Needed
We are looking to expand our design line so our owner will put in ₹65,00,000. Further we are
looking for a ₹1,00,00,000 business loan. Both will be paid back by our fourth year with our
already established customer base and relationships.

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 IDEA:-

With the growing awareness of environmental and social issues, consumers are increasingly
seeking out brands that are committed to sustainability and ethical practices. This presents a
significant opportunity for clothing manufacturers in India, as the country has a rich
tradition of sustainable and ethical textile production. India's middle class is rapidly
expanding, and this is driving demand for high-quality apparel. Clothing manufacturers in
India can capitalize on this trend by focusing on the domestic market and developing
products that meet the needs of Indian consumers. India has a diverse population with a
wide range of fashion preferences. Clothing manufacturers can differentiate themselves by
targeting niche markets, such as organic clothing, hand-woven textiles, or ethnic wear. E-
commerce is booming in India, and this provides a valuable platform for clothing
manufacturers to reach a wider audience. Manufacturers can utilize e-commerce platforms
to sell their products directly to consumers, bypassing traditional retail channels. India has a
vibrant fashion industry with a wealth of talented designers. Clothing manufacturers can
with Indian designers to create unique and fashionable products that resonate with
consumers. India has a strong competitive advantage in the global apparel market due to its
low labour costs and skilled workforce. Clothing manufacturers can expand their reach by
exporting their products to international markets. The clothing industry is constantly
evolving, and manufacturers need to stay ahead of the curve by investing in innovation. This
could include developing new fabrics, production techniques, or marketing strategies. Strong
relationships with suppliers are essential for ensuring a reliable supply of high-quality
materials. Clothing manufacturers should invest in building strong partnerships with their
suppliers. Lean manufacturing can help clothing manufacturers reduce waste, improve
efficiency, and lower costs. Manufacturers should adopt lean manufacturing principles to
improve their competitiveness.

A happy and healthy workforce is more productive and engaged. Clothing manufacturers
should prioritize employee well-being by providing fair wages, safe working conditions, and
opportunities for training and development.

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 INTRODUCTION

Problem Worth Solving

The Flair textile strategy is to expand and grow our existing retail clothing business by

aggressively developing and marketing a full range collection of its own brand. It intends to

market its line as an alternative to existing clothing lines and differentiate itself through

its marketing strategies, exclusiveness, and brand awareness. New Look intends to build on its

core portfolio of products and overcome any obstacles by using the company’s expertise in the

clothing industry.

The company’s goal over the long term is to make an overwhelming impact on the fashion

industry and create a large consumer demand for the product. The company’s goal in the next 2-

5 years is to venture into women’s and children’s clothing. It plans to also license a line of

cologne and perfume, bedding, underwear, small leather goods, jewelry, and eyewear.

Nashville Connection

The company has strategic alliances with Music Records and the Entertainment Group. These

alliances are valuable to Flair textile because they provide the needed exposure for its line and

the association of its products with celebrities. Celebrities are valuable assets because they

receive free clothing for interviews, concerts, and music videos.

Our Solution

Flair textile line is classy, upscale, versatile, and expensive clothing. Our current customers are

males between the ages of 20 and 40. Flair textile not only develops the clothing line, but

supports it with advertising and promotion campaigns. Our customers are the envy of their

fashion forward friends. Our prices are in the mid range to upper level in the market, there are

more expensive clothes on the market. Our clothes are top notch. This allows our customers to

believe they are incredibly smart fashion forward shoppers.

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Market Size & Segments

The company plans to target males between the ages of 20 and 40 with a combined household

income of more than ₹40,000. Within this group, there are no colour barriers, and customers

have diverse backgrounds. The New Look customer is a versatile man who can fit into any

environment and is willing to pay a high price for quality clothing.

Distribution

Flair textile plans to use a direct sales force, retailers, and the Internet to reach its markets.

These channels are most appropriate because of time to market, reduced capital requirements,

and fast access to established distribution channels. The manufacture of denim is expected to

take place in india. Sweaters will be manufactured locally at first, and will later take place in

Mumbai and surat Gujrat . Upon arrival, the clothing will be placed in a warehouse. Initially, the

company plans to use a consolidated warehouse before acquiring a warehouse of its own.

As companies in these mature industries continually look for ways to compete effectively,

apparel and footwear manufacturers have increasingly moved their production facilities to

lower-cost locations outside of the high cost areas. Although some manufacturers have moved

operations completely offshore, others are retaining a few production facilities in the surat

Ahmedabad ludhiana to manufacture products requiring a quick turnaround time.

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Trends

Leaner inventories, but continued pricing pressures

After several difficult years and many bankruptcies in the early 2010s, the apparel industry is

relatively healthier overall, and its lower inventory levels are a sign of that. Despite the lean

inventories, however, prices of women’s apparel declined in the first 6 months of 2015,

compared with year-earlier levels, after rising slightly in 1998. S&P’s still expects some degree of

apparel pricing pressure to persist in the near future. Intensifying competition doesn’t bode well

for apparel manufacturers’ ability to raise prices. Companies are continually searching around

the globe for cheaper sourcing and are looking for ways to cut operating costs. Consumers are

also very value conscious-they want quality merchandise at the lowest possible price. This trend

is evident in the successful growth of off-price retail stores.

Modest growth in ’16

As with most mature industries, the apparel and footwear industries are experiencing intense

competition and pricing pressures, while facing the need for constant product innovation.

However, these industries are enjoying a great economic cycle, with low interest rates, low

unemployment, strong consumer confidence, and a low savings rate. Consumers are continuing

to spend at a healthy clip. As a result, S&Ps expects sales for the apparel industry to rise about

4% in 2016. We believe that maker’s with strong brand recognition and those that are closely in

tune with consumers’ needs will enjoy average growth. The footwear industry faces a tougher

environment, however, considering the still-high inventory levels and low-margin price points.

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Buy now, wear now

In the past, consumers purchased apparel and footwear for the upcoming season when retail

stores decided it was best to carry the merchandise, usually months in advance. Times are

changing, however, consumers are buying apparel and footwear closer to or during the season.

The industry has had to adjust to this trend, or risk losing sales and carrying unwanted inventory.

Companies have had to shorten design, development, production, and distribution cycles.

S&P’s believes that the abbreviated production cycles brought about by this "buy now, wear

now" phenomenon has caused companies to re-evaluate their manufacturing processes. With

more and more production taking place offshore, the turnaround time for garments can be

lengthy. Shortened cycles call for production sites in closer proximity to distribution points.

Keys to Success

It’s about fashion, and style. We live or die with the look.

Distribution will be critical. Although we start online, to grow we need to get the

resonance of appearing in retail.

 Department stores

 Apparel specialty stores

 Internet store

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Marketing Plan

The companies marketing plan is:

 Public relations. Press releases are issued to both technical trade journals and

major business publications such as DNR Magazine.

 Trade shows. Company representatives will attend and participate in several

trade shows such as Magic in Las Vegas.

 Print advertising. The company’s print advertising program includes

advertisements in magazines such as Code, and Rap Pages.

 Website. New Look plans to establish a presence on the Internet by developing a

website. Plans are underway to develop a professional and effective site that will

be interactive and from which sales will be generated worldwide. When up and

running the customers who choose will be able to purchase our clothes from the

comfort of their own home. We will even offer free expedited shipping to our

reglars.

 Social Media – We will use Facebook, Twitter, Instagram and YouTube. Celebrities

will be seen wearing our clothes on Facebook and Instagram. We will also run

sales and promotions online. We will speak with our customers as well as have

them speak back on Twitter. Youtube will be used as a way of promoting our

clothing line designers. They will answer questions about fashion "dos and

don’ts" and the best way to pick their colour palate.

 The company also plans to use various other channels including billboards, radio

and television commercials, and a street team.

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Sales Plan

New Look intends to build a sales team that will be tasked with generating sales leads

on a regional and national basis. They will also be responsible for establishing

connections with retail outlets.

A key factor in the success of New Look will be its distribution. The company plans to

use the following retail distribution channels:

 Department stores

 Apparel specialty stores

 Internet store

Differences exist in the distribution mix for men’s, women’s, and children’s items. For

example, more women’s apparel is purchased in specialty and department stores than

is the case for men’s apparel. Men’s apparel is more prevalent in discount stores and

general merchandise chains. In the children’s segment, a considerably higher portion of

apparel is purchased in discount stores.

Catalogs are another important method of distribution. Consumers have less time to

shop, and for some, catalog shopping offers a more convenient and pleasant

alternative.

The distribution channel that has received the most attention recently is the Internet.

Although it now represents only a small portion of apparel sales, this distribution

channel has the most potential for growth. Consumers like the convenience of being

able to shop from anywhere and at anytime they wish. Manufacturers with Internet

sites use them for marketing and informational purposes. With expected technological

advances in hardware, software, and data pipelines in the future, shopping for apparel

and footwear should gain popularity.

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Key Metrics are:

1 – Keeping track of the customers that mention the print publications. We want about

10 to 15 percent of our people to mention the add, use a code or a referral. We will be

taking surveys and each cash register attendant is set to ask two questions, did any one

help you, where did you hear about us?

2 – Trade shows – Connect with designers and make manufacturing deals at trade

shows. We will keep very good records of the cost of the trade show and the profit from

going there. We must cover our costs and make 1 or 2 percent of sales or it is not worth

it.

3 – Public Relations – Keep the cost low and measure by overall sales. These are hard to

see and measure directly. They fall under branding and will be seen in sales and Twitter

and Facebook. We need to be on people’s minds, have them speaking about us.

4 – Website. These are measured by page views and links and sharing and our sales on

our site. We want 80 percent of the people who search for us and view our clothes to

turn into online sales. Technology allows us to keep track of if they drop out and what

point in the process. We will have sales people on chat standing by to help.

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Company

Overview

Ownership & Structure

Flair textile was founded as a Tennessee C-Corporation with principal offices located in

Memphis, TN. All operations, from administration to marketing strategies, take place at

this leased office location of approximately 500 square feet.

Past Performance

We brought our sales up to $3 million last year, with a 25% gross margin, but no profits.

That gross margin was way below industry averages for good reasons as we ramped up,

and we project an industry-standard gross of 50% for the future.

Products

Living style products will be priced at the high end to reflect the quality and

exclusiveness associated with the brand. The company will use high-end materials such

as cashmere, a wool blend, and high gauge denim. When a mark up is placed on Flair

textile products, customers are willing to pay the premium because of the perceived

value and quality guarantee that comes with all products. The Flair textile line is targeted

at males between the ages of 20 and 40.

Management Team

The company’s management philosophy is based on responsibility and mutual respect.

New Look has an environment and structure that encourages productivity and respect

for customers and fellow employees.

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Key Assumptions

– There are fashion forward men in the area

– These men have money they could spend on luxuries if they choose

– These men are looking for high quality and unique clothes. They appreciate

brands over everything else.

Use of Funds

The livingstyle textile strategy is to aggressively develop and market a full range

collection to consumers. The company intends to market its line as an alternative to

existing clothing lines and differentiate itself through its marketing strategies,

exclusiveness, and brand awareness. New Look intends to build on its core portfolio of

products and overcome any obstacles by using the company’s expertise in the clothing

industry.

Sources of Funds

We believe we will be able to finance our growth through careful management of

existing streams of income and working capital generated by the business.

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 SWOT ANALYSIS

STRENGHTS:
 Established brand reputation
 High-quality product offerings
 Efficient supply chain management
 Skilled and experienced workforce
 Strong distribution network

WEAKNESSES:
 Dependence on external suppliers
 Vulnerability to fashion trends
 Limited online presence and e-commerce capabilities
 Reliance on specific key customers
 Potential production bottlenecks

OPPORTUNITIES:

 Growing global market for sustainable fashion

 Expansion into emerging markets
 Diversification of product lines
 Integration of e-commerce and digital marketing
 Collaborations with influencers and designers

THREATS:
 Intense competition from global and local brands
 Fluctuations in raw material prices
 Economic downturn impacting consumer spending
 Rapid changes in consumer preferences
 Supply chain disruptions and geopolitical uncertainties

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 It is a key to our financial success to grow smart clothing manufacturing not just to sell
cloths, but as a company. We are looking for an investment of ₹ 1,00,00,000 seed money
with the hopes of eventually selling and established clothing manufacturing. This means
we must always be reinvesting in the future of clothing manufacturing.

Advantages of a financial business plan

 Provides a roadmap for financial success: A financial business plan outlines your
company's financial goals and objectives, and it helps you track your progress
towards achieving them. This roadmap can help you make informed decisions
about your business, such as how to allocate resources, invest in new
opportunities, and manage risk.

 Helps you secure funding: If you're looking for funding from investors or lenders, a
well-written financial business plan is essential. It will demonstrate to potential
investors that your company has a viable business model and that you have a
sound plan for managing your finances.

 Improves financial discipline: The process of creating and maintaining a financial

business plan can help you develop better financial discipline. You'll be more likely
to track your expenses, make informed decisions about your spending, and avoid
financial pitfalls.

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  Identifies potential risks: A financial business plan can help you identify potential
risks to your company's financial health. This information can be used to develop
mitigation strategies and make contingency plans.

 Enhances communication and collaboration: The process of developing a financial

business plan can help to improve communication and collaboration among
different departments within your company. This can lead to better decision-
making and a more cohesive approach to financial management.

Disadvantages of a financial business plan

 Can be time-consuming to create: Creating a financial business plan can be a time-

consuming process, especially if you're not familiar with financial modeling and
forecasting.

 Requires accurate data: The accuracy of your financial business plan will depend on
the accuracy of your data. If your data is incomplete or inaccurate, your plan will
not be reliable.

 May need to be updated regularly: As your business grows and changes, you'll
need to update your financial business plan regularly. This can be an ongoing
chore, but it's essential to ensure that your plan remains relevant and accurate.

 Can be difficult to forecast the future: Financial forecasting is an inexact science,

and it's impossible to predict the future with certainty. This means that your
financial business plan may not always be accurate, and you may need to adjust
your plans as circumstances change.

 Not a guarantee of success: Even with a well-written financial business plan, there
is no guarantee of success. The business world is unpredictable, and there are
many factors that can affect your company's financial health.

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